Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Hansard source

by leave—I move:

That the Senate take note of the document.

We are here to discuss the ministerial statement on the conclusion of the free-trade negotiations with the Republic of Korea that the Minister for Trade and Investment made in the other place. Sixty-two days ago, that statement was made. And, 62 days ago, when the minister made the statement, Labor welcomed the progress in the negotiations for a free trade agreement with the Republic of Korea and urged the minister to release the text of the agreement. Well, 62 days later, we are still waiting. In fact, it is 69 days since the Prime Minister stood on the floor of the House of Representatives and told the Australian people that the agreement had been 'successfully concluded'. But, 69 days after the Prime Minister made that statement, we still have not seen the text.

Labor do recognise that reducing barriers to trade can boost economic growth and create Australian jobs, and negotiations on a bilateral agreement with the Republic of Korea were initiated by our government in 2009. In government we also focused on the opportunities and the challenges of this the Asian century and acted to deepen and enrich our relationships in the region, including through trade. The Republic of Korea is our third-largest export market, and a bilateral trade agreement presents significant opportunities for Australian exporters and Australian workers. We welcome the opportunities an agreement could present for our exporters in both goods and services, and note in particular the potential gains for beef producers.

The fact is an agreement will present challenges for a number of our industry sectors, including the textile, clothing and footwear sector, the steel sector and the automotive sector. As senators would know, sadly, prior to the minister's statement in the House, Holden announced it would cease its manufacturing operations in Australia; and, sadly, yesterday Toyota also announced its intention to cease manufacturing in Australia. Toyota's announcement made reference to the impact of free trade agreements. In Labor's view, the full impact of the agreement with Korea on our auto sector will need to be carefully assessed. Unfortunately, despite the passage of 62 days since this statement was first tabled in the other place, we cannot make that assessment, nor can the Australian people, because the government has still not released the text of the agreement.

Today, in question time, the Leader of the Government in the Senate made reference to the potential benefits for automotive component manufacturers, but no-one can make a judgement about the claims he made because the terms of the agreement remain secret. Australians do not know the detail of what has been agreed by its government, our government, in relation to the auto sector. What we do know is that this is the same government that has taken $500 million support from the auto industry between now and 2015, and that this is the same government whose ministers publicly goaded Holden to leave—the same ministers who have sat on their hands whilst Toyota reached the same decision. The tens of thousands of workers in the auto industry and its suppliers simply cannot trust this Prime Minister or this Liberal Party. They do not care about industry and they do not appear to care whatsoever about Australian jobs. The reality is that this Prime Minister has not lifted a finger to save Australian jobs or to find ways to create new opportunities. He has become part of the problem rather than part of the solution.

In the minister's statement, he noted the government's decision to agree to an investor-state dispute settlement, or ISDS, mechanism. Labor has grave reservations about the inclusion of ISDS mechanisms in this and other bilateral trade agreements. These mechanisms give foreign corporations the right to take action against our governments when they make public-interest decisions that adversely affect their commercial interests. Australian taxpayers, for example, are already footing the bill for such a challenge launched by Philip Morris Asia against our world-leading plain packaging laws. We are told by the minister that ISDS mechanisms in the Korean agreement and other agreements will include so-called safeguards—but without any public discussion or scrutiny of these safeguards. In fact, 62 days ago the minister did not outline the so-called safeguards in the proposed ISDS provisions in the Korean free trade agreement, and he has not subsequently done so.

In a newspaper piece published earlier this week, the minister attacked critics of the government's trade policy as 'peddlers of misinformation'. Instead of attacking those who question him, the minister should recognise legitimate concern in this parliament and in the community about the impact of ISDS mechanisms. Australians are entitled to ask what these provisions would mean for our environmental standards, labour laws, copyright and the Pharmaceutical Benefit Scheme, amongst others. It is time for the minister to start explaining his decisions.

Before anyone accepts the proposition that bilateral trade agreements without an ISDS cannot be negotiated, they should reflect on the Howard government's negotiation of an agreement with the United States and the more recent negotiation with Malaysia by the former Labor government, both of which did not include such provisions. Labor's position is that the outcome of any negotiation should be assessed against the national interest, and of course Australia's interest must never be traded way.

So I again renew Labor's call for the release of the full text of the negotiated agreement, including the ISDS mechanism, so that the parliament and the Australian community can assess its potential benefits and, if applicable, its detriments. If the government believes this is a good deal then the government would not be frightened of releasing it to the Australian people and to the parliament. Last year the Senate ordered the release of both bilateral and plurilateral trade agreements before signing. Not only has the government not tabled the text of the agreement with Korea; it has indicated it will not comply with the audit in relation to this agreement or any other agreement. I would urge the government and the minister to reconsider their position.

A week before, the minister delivered this statement to the House. As I said, the Prime Minister said that the minister had 'successfully concluded negotiations for a free trade agreement between Australia and the Republic of Korea'. The minister's statement indicates that he had 'substantially concluded negotiations'. Last December, the minister did not explain what, if any, stumbling blocks remained, and the somewhat stale statement before the chamber shines no additional light on this matter. The fact is that we have a shroud of secrecy in relation to these trade negotiations, and what that has done is emboldened opponents of trade liberalisation. Transparency should be one of the pillars of trade policy. It informs debate; it builds understanding; and, therefore, it leads to better outcomes. The minister should recognise this truth before he does further damage to community support for a more open and engaged economy. Labor look forward to examining the terms of the proposed agreement with Korea, and we will assess it carefully to ensure it is in the national interest.